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TMI Blog2022 (7) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice, the assessee would be deemed to have waived his right to assail a notice solely on the ground of deficient notice period. The scheme of Income Tax Act and the object behind its promulgation is to ensure maximum collection of tax by the State. Income Tax Act is more Revenue Centric than Assessee-Centric, thus, in case of any ambiguity or gray area while interpreting of any provision of Income Tax Act can be resolved by taking que from the object and intent behind enactment of Income Tax Act. As such in the present case, where a detailed reply on merit was submitted by the petitioner to the show cause notice which afforded six days instead of prescribed seven days to submit reply, the petitioner is estopped from raising any objection to the said show cause notice merely on the aforesaid ground. The authority upon taking into consideration the detailed reply of the petitioner, has taken a decision to issue notice under Section 148 of the Income Tax Act on the basis of material available on record including reply of the petitioner. Thus, this decision in our considered opinion cannot be gone into inasmuch as it is for the authority to act in accordance with Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom sources of funds of M/s Jai Dada Agrotech (P) Ltd. However, respondent then passed the impugned order dated 31/03/2022 and decided that after due consideration of the material available on record, the notice against the petitioner under Section 148 of Income Tax Act 1961 should be issued and resultantly a notice under Section 148 of Income Tax Act was also issued dated 31/03/2022 (Annexure P/8) which is also under challenge in the present case. 3. The main contention of the learned counsel of the petitioner is to the effect that the process of conducting an inquiry under Section 148-A of Income Tax Act is not an empty formality. On the contrary, the inquiry is in the nature of quasi judicial inquiry and therefore, the respondents were obliged to ensure adherence to the principle of natural justice. It is submitted by the learned counsel that Section 148-A of Income Tax Act provides that when the Assessing Officer intends to issue a notice under Section 148-A of Income Tax Act, it is required to issue a show cause notice to the assessee under Section 148-A of the Income Tax Act calling upon him to show cause within a period of seven days. 4. Learned counsel for the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order impugned as well as impugned notice deserve to be set aside. 5. Per contra, learned counsel for the respondent submits that the petitioner was given show cause notice before passing the order under Section 148-A of the Income Tax Act and the petitioner within a period of four days submitted its reply, therefore, the petitioner cannot challenge the notice on the ground that clear seven days time was not afforded. Learned counsel also submits that the sufficiency of material, is a decision which is required to be taken by the Assessing Officer and thus the Court cannot substitute its opinion as regards sufficiency of material. 5.1 It is also submitted by the learned counsel that the challenge to the order impugned is infact premature inasmuch as a notice under Section 148 of the Income Tax Act has been issued to the petitioner and that is still to be taken to its logical end, thus, the petitioner ought to have awaited the proceedings initiated pursuant to the issuance of notice under Section 148 of Income Tax Act, to be completed. 5.2 Learned counsel for respondent in support of his contention relied upon the judgment in the case of Raymond Woollen Mills Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee. Explanation.-For the purposes of this section, specified authority means the specified authority referred to in section 151. . 6. We have heard rival contentions of the parties and perused the record. 7. The first notice to the petitioner under Section 148-A(a) of the Income Tax Act was issued on 15/03/2022 (Annexure P/3) . The said notice contained two entries dated 11/05/2017 and 27/10/2017 by which the amount of Rs.19,20,060/- was credited twice to the account of petitioner and the notice informed the petitioner that the amount which was received by the petitioner s company in form of RTGS, was from bank account of one M/s Epoch Mercantile Private Limited. 8. The petitioner in response to this notice dated 15/03/2022 submitted its reply dated 16/03/2022 (Annexure P/4) wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit of seven days was also raised, however, while taking into consideration the elaborate reply on merit supported by the voluminous record, in our considered view, the petitioner has waived its rights to object the validity of the notice issued under Section 148-A of the Income Tax Act on the ground of having been afforded less than 7 days time to respond. 11 . The contention of learned counsel for the petitioner is that since show cause notice issued under Section 148A(b) fell shot by the mandated minimum period of seven days, the entire exercise thereafter has vitiated is considered to be rejected at the very outset. Reason being that though the requirement of affording seven days clear notice to the assessee is couched in mandatory language but in a given case where despite show cause notice having been issued affording less than seven days for assessee to respond, the assessee yet responds to the same within the deficient period, in an elaborate manner without objecting to the very maintainable of such show cause notice, the assessee would be deemed to have waived his right to assail a notice solely on the ground of deficient notice period. 11.1 The scheme of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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